“Transparency” is trending in corporate governance circles. With internet and social media resources at the fingertips of investors, consumers and employees like never before, and increased governmental oversight in the wake of global financial crisis, businesses of all sizes have seen an increase in the demand for more accurate reporting. As such, assuring transparency is fast becoming an essential element of successful corporate management strategies.
Moreover, the early results seem to suggest significant benefits to providing a transparent approach. When companies put credible data in the hands of their consumers, the result is more informed consumer decisions. This has obvious benefits for the consumer, but at the same time creates corporate sustainability. Informed consumers tend to achieve higher levels of satisfaction and confidence in their purchases, which often leads to purchasing more of a company’s products and services. Increased sales lead investors to buy more stock and employees to work harder. And the benefits spiral into increased revenues, job security, and a host of other advantages.
Those opposing the push toward transparency policies have expressed concern for the effect on competitiveness with international entities who may not be held to the same standard, as well as the costs involved in providing more complete data. But these potential adverse effects do not seem to be halting the revolution. As we roll toward 2018, it looks like Howard Schultz, head of Starbucks, hit the nail on the head when he said, “the currency of leadership is transparency.”
If you need assistance or have questions regarding transparency policies or reporting requirements, we can help. Please contact us at (248) 477-6300.